CVS launches first pharmacies within Target stores.
The pharmacies, in six stores in North Carolina, are being operated through a store-within-a-store format under the CVS/pharmacy banner.
CVS, which completed its $1.9 billion purchase of Target's 1,672 pharmacies and 79 clinics in December, will rebrand the prescription counters around the country on a rolling basis over the next six to eight months.
CVS president and chief executive office Larry Merlo dismissed the possibility of front-end sales being diverted to the discounter. "Target and CVS share customers, if you will," he told USA Today. "We know we have CVS customers who are shopping Target, and vice versa. We think that this partnership really serves as a complement to the customer experience and customer accessibility."
Brian Cornell, Target's chairman and CEO, told the newspaper the arrangement "provides our guests with the type of leading-edge services that CVS Health can provide and the convenience of accessing the CVS/pharmacy while they're on their Target run. So I think it's going to be beneficial to both companies and most importantly to the Target guests."
Signs outside the converted pharmacies said, "Let us fill your prescription while you fill your cart."
Merlo said the arrangement lets CVS introduce its integrated pharmacy services and health care expertise to Target shoppers nationwide. "Our pharmacy care and clinic offerings, along with our innovative digital tools, will offer Target guests expanded wellness options and increased access to care," he said. "In addition, having CVS/pharmacy in Target stores will expand the network of our pharmacies available to our CVS/caremark plan members and allow millions of new patients to utilize our unique suite of pharmacy programs, improving outcomes for patients and lowering costs for clients. We look forward to welcoming Target guests as our pharmacy patients."
"Target is committed to offering solutions for our guests as they prioritize making smarter choices for the overall health and well-being of themselves and their families, " commented Cornell. "As the number of stores opening rebranded pharmacies and clinics grows, more and more guests will have access to CVS Health's leading pharmacy care and clinical programs during their Target shopping experience. At the same time, our signature category of wellness continues to gain strength as we shift resources to delivering products and experiences that help guests eat well, be active and find natural and clean label options."
Over time, all the Target pharmacies will be converted to be able to offer the complete suite of services available at traditional CVS locations. Maintenance Choice, a program that lets CVS/caremark plan members choose to fill 90-day supplies of medications for chronic conditions either through mail order or at any CVS/pharmacy, is now available in all pharmacies in Target. Specialty Connect, which gives patients the option to bring their specialty prescriptions to any CVS/pharmacy, will be available to patients as Target pharmacies convert to CVS. Pharmacy Advisor, a program in which CVS/Caremark plan members diagnosed with chronic conditions receive face-to-face counseling when they choose to fill prescriptions at CVS/pharmacy or by phone when they choose mail order, will be available at all pharmacies in Target by the end of 2016.
"As we roll out the new CVS/pharmacy in Target stores, we will be working closely with patients to make their transition to our services and programs as simple and seamless as possible," said Helena Foulkes, president of CVS/pharmacy and executive vice president of CVS Health. " CVS/pharmacy in Target stores will not only introduce new customers to our leading pharmacy care and innovative clinical programs, it will also introduce them to a set of digital tools to help them stay healthy."
Patients at the pharmacies will have access to convenient and easy-to-use digital tools, such as the CVS/pharmacy app and CVS.com, to help them manage their prescriptions and stay on track with their medications. Patients who utilize CVS/pharmacy's digital offerings are also able to scan their pill bottles to order refills of their prescriptions and receive medication reminders while benefiting from easier in-store pickup. CVS/pharmacy's ExtraCare loyalty program and the opt-in ExtraCare Pharmacy & Health Rewards will allow patients to earn $5 in ExtraBucks Rewards for every 10 prescriptions filled. Patients can also earn rewards for the other things they do to stay healthy, like getting immunizations or choosing email refill reminders.
Foulkes attended the grand opening of the pharmacy in the Target in Wesley Chapel, along with Target executive vice president and chief operating officer John Mulligan. The other rebranded pharmacies are in Hickory, Matthews, Monroe, Morrisville and Raleigh.
The acquisition expanded CVS' pharmacy footprint by approximately 20% and its clinic footprint by about 8%. Consumers in several new markets, such as Seattle; Denver; Portland, Ore.; and Salt Lake City, will soon be able to experience CVS/pharmacy for the first time. The chain now has a presence in every state except Wyoming.
Target clinics will be rebranded as CVS MinuteClinic over the next six to eight months, and a CVS/pharmacy will be included in all new Target stores that offer pharmacy services.
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|Publication:||Chain Drug Review|
|Date:||Feb 22, 2016|
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